Monetary Benefits and Incentives Topped by Leadership and Engagement

by: Nichole Gunn November 12, 2010

Involving employees in the structure, initiation, and review of proposed reward programs have been found to effectively cultivate higher levels of employee engagement. This is part of the results of a new survey, “Impact of Rewards Programs on Employee Engagement,” conducted by WorldatWork, Loyola University Chicago and Hay Group.

With the event of monetary cuts such as wage freezes and lost bonuses, as well as downsizing during the recession, employers are strategizing on techniques that will motivate employees through employee engagement. Otherwise, once the market opens again, the grass may look greener in the employ of another company.

According to the survey details, “employee engagement is typically described as high levels of employee involvement, commitment to the organization, and job satisfaction.”

Dr. Dow Scott, Professor of Human Resources and Industrial Relations at Loyola University Chicago noted that "involving employees in programs that affect them offers a direct way for reward professionals to enhance employee engagement."

Along with employee involvement, the “quality of leadership has a profound impact on employee engagement and motivation," noted Paul Rowson, managing director of the WorldatWork Washington, D.C. Office and Conference Center. He added, "Organizations must think in terms of total rewards and not just financial rewards if they are to enhance employee involvement, commitment, job satisfaction – and performance."

Another study conducted by the Boston Consulting Group demonstrated that a third of the participating companies worldwide were affected by low employee engagement. It is easy to see this is growing concern for employers.